We Are Excited To Introduce BTC Support For Collateralized Debt Positions!
You already know full well that Equilibrium is compatible with EOS cryptocurrency as means to secure a collateralized position in USD-pegged stablecoins. Now we’re launching new support for Bitcoin collateral, the world’s most popular cryptocurrency, to do the same thing.
Already a leading DeFi project on the EOS blockchain, Equilibrium is more fully differentiated by actually integrating the BTC asset with the rapidly growing DeFi sector of the cryptocurrency space. This cross-chain compatibility is made possible by pTokens (pbtc), a protocol that basically allows for teleporting crypto tokens from one blockchain to another.
The technology behind pTokens makes every cryptocurrency compatible with every blockchain. We already use it to turn EOS into pEOS, making EOS and other EOS tokens fully functional in an Ethereum ecosystem. Now we’re using it represent and interact with BTC tokens on the EOS blockchain.
How does it work?
It’s now possible to overcollateralize your Bitcoin holdings in exchange for Equilibrium’s price-stable cryptocurrency, EOSDT. For this purpose, we have implemented a deep integration of pTokens solution into the web interface of Equilibrium. The goal was to provide users with the seamless user experience. Now Bitcoin collateralization with us is as simple as two blockchain transactions — one is to deposit BTC and another is to redeem EOSDT.
The pTokens system has a trustless two-way peg, which means the representative EOS asset goes up or down in value at the same rate as its corresponding BTC asset. A provably decentralized process keeps this entirely transparent.
We expect rather a lot of demand for this BTC support and are thrilled to expose our users to new and enhanced liquidity via cryptocurrency’s oldest asset. This lends only more resilience to our DeFi platform, already backed up by a multimillion-dollar Stability Fund to ensure users get their money back in case of a major market crash.
Let’s not forget to mention that we have a roadmap going far beyond this. After BTC support, we have plans for ETH, TON, Tezos, and more.
As always, stay tuned for our latest news.